“Many Banks Don’t Want to See Their LO’s Licensed”
Maybe I should say, they don’t want their better loan officers licensed.
Many loan officers moved away from the mortgage broker shops, because they couldn’t get licensed, as many failed the exams, no matter how many times they were taken.
I experienced the same issue. I had a loan officer take the exam and failed. He felt he would never be able to pass the exam, so he jumped ship and went to work for a bank.
I have interviewed many LO for the last couple of years that work for banks, many of which I wouldn’t hire. All that were currently working at banks, felt they could do more business working for a mortgage broker, but many brought up the issue about getting licensed, as their main concern. If they are concerned about getting license, we’re not the right home for them.
There have been rumblings, for some time, that states want to see all loan officers licensed. I wonder how many will survive?
We heard an interesting one the other day and it goes like this: certain banks may be asking their residential loan officers to sign an agreement that says they will not pursue their LO mortgage license with the state. We’re checking out leads on this, but it suggests that certain banks want to prevent their LOs from jumping ship to nonbanks where a license is required. (Residential bank LOs do not require a license – though they must register. Depending on the state, it can take two to three months to get a license – which can be an eternity if you’re unemployed.)
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